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Press release from Business Wire

AECOM reports second-quarter fiscal year 2012 financial results

<p class='bwalignc'> <i><b>Reports backlog of $16.0 billion</b></i> </p> <ul> <li class='bwlistitemmargb'> Revenue for the second quarter of $2.0 billion. </li> <li class='bwlistitemmargb'> Revenue, net of other direct costs, for the second quarter of $1.3 billion. </li> <li class='bwlistitemmargb'> Second-quarter diluted earnings per share of 43 cents. </li> <li class='bwlistitemmargb'> Net income attributable to AECOM for the second quarter of $49 million. </li> <li class='bwlistitemmargb'> Total backlog at March 31, 2012, of $16.0 billion. </li> <li class='bwlistitemmargb'> FY12 EPS guidance range of $2.30-$2.45. </li> </ul> <p class='bwalignc'> </p>

Thursday, May 03, 2012

AECOM reports second-quarter fiscal year 2012 financial results07:00 EDT Thursday, May 03, 2012 LOS ANGELES (Business Wire) -- AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for public and private sector clients in more than 130 countries around the world, announced today its financial results for the second quarter of fiscal year 2012. Second-quarter revenue was $2.0 billion, a 4% increase from the second quarter of fiscal year 2011. AECOM's gross revenue includes a significant amount of pass-through costs and, therefore, the company believes that revenue, net of other direct costs, which is a non-GAAP measure, also provides a valuable perspective on its business results. Second-quarter revenue, net of other direct costs, was $1.3 billion. AECOM reported net income attributable to AECOM of $49 million and diluted earnings per share (EPS) of 43 cents for the second quarter. This represents a decrease of 15% from net income of $58 million and a decrease of 12% from diluted earnings per share of 49 cents for the same period last year. Operating income for the second quarter decreased 16% from last year to $73 million. For the first six months of fiscal year 2012, AECOM reported net income attributable to AECOM of $97 million and diluted EPS of 85 cents, a decrease of 15% and 12%, respectively, compared to the same period last year. Operating income for the first six months of fiscal 2012 decreased 16% year over year to $150 million. For the first six months of fiscal year 2012, the company's revenue, net of other direct costs, increased 1% to $2.5 billion, while revenue was $4.0 billion — 4% higher than the same period last year. “During the quarter, we saw strength in our Professional Technical Services segment driven by accelerated growth in key end markets and regions, including emerging and natural resources as well as Asia. This growth was enabled by investments that we have made to enhance our capabilities across AECOM,” said John M. Dionisio, AECOM chairman and chief executive officer. “Unfortunately, this strength was overshadowed by challenges in our Management Support Services segment.” As a result of these factors, AECOM is adjusting its full-year EPS guidance to $2.30 to $2.45. New Wins and Backlog “Our new wins accelerated sequentially, topping $2.4 billion, while backlog also was up sequentially to $16 billion — a 4% increase year over year. These metrics demonstrate the underlying strength of our business as clients increasingly turn to AECOM for our integrated service platform and global expertise,” added Michael S. Burke, AECOM president. “This demand, coupled with a broad-based improvement in profitability during the second half, will allow us to achieve our target of generating free cash flow roughly equal to net income this year.” Business Segments In addition to providing consolidated financial results, AECOM reports separate financial information for its two segments: Professional Technical Services (PTS) and Management Support Services (MSS). Professional Technical Services The PTS segment delivers planning, consulting, architecture and engineering design, and program and construction management services to institutional, commercial and public sector clients worldwide. For the second quarter of fiscal year 2012, the PTS segment reported revenue of $1.8 billion and revenue, net of other direct costs, of $1.2 billion, compared to revenue of $1.6 billion and revenue, net of other direct costs, of $1.1 billion in the same period last year. This represents a 9% increase in revenue and a 2% increase in revenue, net of other direct costs. PTS segment operating income was $91 million compared to $92 million last year. Management Support Services The MSS segment provides facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, primarily for agencies of the U.S. government. For the second quarter of fiscal year 2012, the MSS segment reported revenue of $209.8 million and revenue, net of other direct costs, of $126.4 million, compared to revenue of $290.8 million, and revenue, net of other direct costs, of $148.6 million for the same period during fiscal year 2011. This represents a 28% decrease in revenue and a 15% decrease in revenue, net of other direct costs. In addition, the MSS segment reported operating income of $2 million compared to $19 million for the same period during fiscal year 2011. Balance Sheet and Cash Flow As of March 31, 2012, AECOM had $466 million of total cash and cash equivalents, $1.3 billion of debt and $1.05 billion in committed bank facilities with $807 million in unused capacity. Cash flow from operations totaled $11 million in the quarter. AECOM is hosting a conference call today at 10 a.m. EDT, during which management will make a brief presentation focusing on the company's results, strategies and operating trends. Those wishing to dial in to the call via telephone can do so by dialing 1-866-831-6272 or 1-617-213-8859 and entering the passcode 45169144. Interested parties also can listen to the conference call and view accompanying slides via webcast at www.aecom.com. The webcast will be available for replay following the call. About AECOM AECOM is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that create, enhance and sustain the world's built, natural, and social environments. A Fortune 500 company, AECOM serves clients in more than 130 countries and had revenue of $8.2 billion during the 12 months ended March 31, 2012. More information on AECOM and its services can be found at www.aecom.com. Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings or other financial items; any statements of the plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in forward-looking statements include: uncertainties related to funding, audits, modifications and termination of long-term government contracts; losses under fixed-price contracts; limited control over operations run through our joint venture entities; misconduct by our employees or consultants or our failure to comply with laws or regulations; failure to successfully execute our merger and acquisition strategy; the need to retain and recruit key technical and management personnel; and unexpected adjustments and cancellations related to our backlog. Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in our reports filed with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statement.   AECOM Technology CorporationConsolidated Statement of Income(unaudited - in thousands, except per share data)                         Three Months EndedSix Months EndedMarch 31, 2012March 31, 2011March 31, 2012March 31, 2011   Revenue $ 2,010,951 $ 1,936,421 $ 4,040,131 $ 3,872,604 Other direct costs   721,451   643,022   1,519,782   1,365,428 Revenue, net of other direct costs (non-GAAP) 1,289,500 1,293,399 2,520,349 2,507,176 Cost of revenue, net of other direct costs   1,213,383   1,193,664   2,353,886   2,302,106 Gross profit 76,117 99,735 166,463 205,070   Equity in earnings of joint ventures 16,898 11,330 25,860 19,427 General and administrative expenses   19,857   23,608   42,468   46,870 Income from operations 73,158 87,457 149,855 177,627   Other income 4,471 1,456 6,390 3,744 Interest expense, net   (11,204 )   (10,014 )   (21,818 )   (19,886 ) Income from continuing operations before    income tax expense 66,425 78,899 134,427 161,485   Income tax expense   16,769   19,239   36,347   39,742   Net income 49,656 59,660 98,080 121,743   Noncontrolling interest in income of    consolidated subsidiaries, net of tax (662 ) (1,945 ) (1,155 ) (7,160 )         Net income attributable to AECOM $ 48,994 $ 57,715 $ 96,925 $ 114,583   Net income allocation: Preferred stock dividend $ – $ – $ – $ 2 Net income available for common    stockholders   48,994   57,715   96,925   114,581 Net income attributable to AECOM $ 48,994 $ 57,715 $ 96,925 $ 114,583   Net income attributable to AECOM per share: Basic and diluted $ 0.43 $ 0.49 $ 0.85 $ 0.97   Weighted average shares outstanding: Basic 113,352 117,283 113,659 117,642 Diluted 114,288 118,278 114,439 118,697   AECOM Technology Corporation     Balance Sheet and Cash Flow Information(unaudited - in thousands)                 March 31, 2012September 30, 2011 Balance Sheet Information: Cash and cash equivalents $ 465,662 $ 456,940 Accounts receivable, net 2,554,224 2,380,181 Working capital 1,231,222 1,175,620 Working capital, net of cash and cash equivalents 765,560 718,680   Total debt 1,260,968 1,162,469 Total assets 6,013,232 5,789,328 Total AECOM stockholders' equity 2,433,830 2,339,711     Six Months EndedMarch 31, 2012March 31, 2011 Cash Flow Information: Net cash provided by (used in) operating activities* $ 4,998 $ (146,035 ) * March 31, 2011, amount includes deferred compensation plan termination ($90 million) and associated excess tax benefits ($58 million).     AECOM TECHNOLOGY CORPORATIONReportable Segments($ in thousands)                                 ProfessionalTechnicalServicesManagementSupportServicesCorporateTotalThree Months Ended March 31, 2012 Revenue $ 1,801,145 $ 209,806 $ - $ 2,010,951 Other direct costs   638,030     83,421     -     721,451   Revenue, net of other direct costs (non-GAAP) 1,163,115 126,385 - 1,289,500 Cost of revenue, net of other direct costs   1,076,674     136,709     -     1,213,383   Gross profit 86,441 (10,324 ) - 76,117 Equity in earnings of joint ventures 4,556 12,342 - 16,898 General and administrative expenses   -     -     19,857     19,857   Income from operations $ 90,997   $ 2,018   $ (19,857 ) $ 73,158     Gross profit as a % of revenue 4.8 % -4.9 % - 3.8 % Gross profit as a % of revenue, net of other direct costs(non-GAAP) 7.4 % -8.2 % - 5.9 %   Three Months Ended March 31, 2011 Revenue $ 1,645,633 $ 290,788 $ - $ 1,936,421 Other direct costs   500,877     142,145     -     643,022   Revenue, net of other direct costs (non-GAAP) 1,144,756 148,643 - 1,293,399 Cost of revenue, net of other direct costs   1,056,998     136,666     -     1,193,664   Gross profit 87,758 11,977 - 99,735 Equity in earnings of joint ventures 4,019 7,311 - 11,330 General and administrative expenses   -     -     23,608     23,608   Income from operations $ 91,777   $ 19,288   $ (23,608 ) $ 87,457     Gross profit as a % of revenue 5.3 % 4.1 % - 5.2 % Gross profit as a % of revenue, net of other direct costs(non-GAAP) 7.7 % 8.1 % - 7.7 %     AECOM TECHNOLOGY CORPORATIONReportable Segments($ in thousands)                                 ProfessionalTechnicalServicesManagementSupport ServicesCorporateTotalSix Months Ended March 31, 2012 Revenue $ 3,608,549 $ 431,582 $ - $ 4,040,131 Other direct costs   1,344,566     175,216     -     1,519,782   Revenue, net of other direct costs (non-GAAP) 2,263,983 256,366 - 2,520,349 Cost of revenue, net of other direct costs   2,092,781     261,105     -     2,353,886   Gross profit 171,202 (4,739 ) - 166,463 Equity in earnings of joint ventures 7,048 18,812 - 25,860 General and administrative expenses   -     -     42,468     42,468   Income from operations $ 178,250   $ 14,073   $ (42,468 ) $ 149,855     Gross profit as a % of revenue 4.7 % -1.1 % - 4.1 % Gross profit as a % of revenue, net of other direct costs(non-GAAP) 7.6 % -1.8 % - 6.6 %   Contracted backlog $ 7,409,504 $ 962,125 $ - $ 8,371,629 Awarded backlog   6,468,962     1,201,049     -     7,670,011   Total backlog $ 13,878,466   $ 2,163,174   $ -   $ 16,041,640     Six Months Ended March 31, 2011 Revenue $ 3,221,404 $ 651,200 $ - $ 3,872,604 Other direct costs   991,841     373,587     -     1,365,428   Revenue, net of other direct costs (non-GAAP) 2,229,563 277,613 - 2,507,176 Cost of revenue, net of other direct costs   2,052,271     249,835     -     2,302,106   Gross profit 177,292 27,778 - 205,070 Equity in earnings of joint ventures 6,129 13,298 - 19,427 General and administrative expenses   -     -     46,870     46,870   Income from operations $ 183,421   $ 41,076   $ (46,870 ) $ 177,627     Gross profit as a % of revenue 5.5 % 4.3 % - 5.3 % Gross profit as a % of revenue, net of other direct costs(non-GAAP) 8.0 % 10.0 % - 8.2 %   Contracted backlog $ 7,770,349 $ 747,190 $ - $ 8,517,539 Awarded backlog   5,189,214     1,647,800     -     6,837,014   Total backlog $ 12,959,563   $ 2,394,990   $ -   $ 15,354,553       AECOM Technology CorporationRegulation G Information($ in millions)   Reconciliation of Revenue to Revenue, Net of Other Direct Costs         Three Months Ended       Six Months EndedMarch 31, 2012       March 31, 2011March 31, 2012       March 31, 2011Consolidated Revenue $ 2,010.9 $ 1,936.4 $ 4,040.1 $ 3,872.6 Less: Other direct costs   721.4   643.0   1,519.8   1,365.4 Revenue, net of other direct costs $ 1,289.5 $ 1,293.4 $ 2,520.3 $ 2,507.2   PTS Segment Revenue $ 1,801.1 $ 1,645.6 $ 3,608.5 $ 3,221.4 Less: Other direct costs   638.0   500.8   1,344.5   991.8 Revenue, net of other direct costs $ 1,163.1 $ 1,144.8 $ 2,264.0 $ 2,229.6   MSS Segment Revenue $ 209.8 $ 290.8 $ 431.6 $ 651.2 Less: Other direct costs   83.4   142.2   175.3   373.6 Revenue, net of other direct costs $ 126.4 $ 148.6 $ 256.3 $ 277.6     Reconciliation of Amounts Provided by Acquired Companies       Three Months Ended March 31, 2012       Six Months Ended March 31, 2012Total       Provided byAcquiredCompanies       ExcludingEffect ofAcquiredCompaniesTotal       Provided byAcquiredCompanies       ExcludingEffect ofAcquiredCompaniesConsolidated Revenue, net of other direct costs $ 1,289.5 $ 6.4 $ 1,283.1 $ 2,520.3 $ 18.6 $ 2,501.7     Reconciliation of EBITDA to Net Income Attributable to AECOM       Three Months EndedMar 31,2012       Dec 31,2011       Sep 30,2011       Jun 30,2011       Mar 31,2011       Dec 31,2010       Sep 30,2010       Jun 30,2010   EBITDA $ 101.6 $ 103.0 $ 157.8 $ 136.2 $ 114.3 $ 117.1 $ 125.8 $ 105.9 Less: Interest (income)/expense* 10.6 10.0 8.9 10.4 10.0 9.9 5.3 1.2 Less: Depreciation and amortization   25.3   25.5   25.1   28.0   27.4   29.8   21.2   17.2   Income from continuing operations attributableto AECOM before income taxes 65.7 67.5 123.8 97.8 76.9 77.4 99.3 87.5 Less: Income tax expense   16.7   19.6   36.4   24.0   19.2   20.5   31.5   22.7   Income from continuing operations attributableto AECOM 49.0 47.9 87.4 73.8 57.7 56.9 67.8 64.8 Discontinued operations, net of tax   –   –   –   –   –   –   –   –   Net income attributable to AECOM $ 49.0 $ 47.9 $ 87.4 $ 73.8 $ 57.7 $ 56.9 $ 67.8 $ 64.8       Fiscal Years Ended September 30,2011       2010       2009       2008   EBITDA $ 525.4 $ 417.5 $ 358.5 $ 284.5 Less: Interest expense* 39.2 9.9 10.7 (1.3 ) Less: Depreciation and amortization 110.3 78.9 84.1 62.8   Income from continuing operations attributableto AECOM before income taxes 375.9 328.7 263.7 223.0 Less: Income tax expense 100.1 91.7 77.0 76.5   Income from continuing operations attributableto AECOM 275.8 237.0 186.7 146.5 Discontinued operations, net of tax – (0.1 ) 3.0 0.7   Net income attributable to AECOM $ 275.8 $ 236.9 $ 189.7 $ 147.2 * Excluding related amortization. NR 12-0501 AECOM Technology CorporationMedia:Paul Gennaro, 212.973.3167SVP & Chief Communications OfficerPaul.Gennaro@aecom.comorInvestors:Paul Cyril, 212.973.2982SVP, Investor RelationsPaul.Cyril@aecom.com